Estate planning is a crucial step in securing your financial future and protecting your loved ones. One of the most common questions I receive as a Rhode Island trust attorney is:
What is the difference between a revocable trust and an irrevocable trust?
Understanding the key differences between these two trust types can help you make the best decision for your unique needs. If you’re wondering whether an irrevocable or revocable trust might be right for you, an estate planning attorney can help you explore your options and guide you through the trust creation process.
What Is a Revocable Trust?
A revocable trust is a flexible estate planning tool that allows you to maintain full control over your assets during your lifetime.
Key Features of a Revocable Trust:
You Control the Trust – As the creator (also called the grantor or settlor), you can act as the trustee during your lifetime. This means you have direct access and control over the assets within the trust.
You Can Modify or Revoke It – A revocable trust can be amended or completely revoked at any time while you are still alive. Want to change beneficiaries or update your successor trustees? Add a provision for your grandchildren? You have the flexibility to do so.
Avoids Probate – One major benefit of a revocable trust is that it allows your assets to bypass the probate process, ensuring a smooth and private transfer to your beneficiaries for all assets funded within your trust.
Who Is a Revocable Trust Best For? If you want to maintain control of your assets while ensuring they are passed on without probate delays, a revocable trust is a great option.
What Is an Irrevocable Trust?
An irrevocable trust is a more permanent estate planning tool that offers additional asset protection benefits.
Key Features of an Irrevocable Trust:
You Cannot Serve as Trustee – With an irrevocable trust, in order to be protective of assets if there is a need for Medicaid or long-term nursing home care, you appoint someone else as the trustee, meaning you give up direct control over the assets. However, you still set the terms of the trust including designating your trustee and determining the terms fo distribution for real estate and personal property.
Cannot Be Changed or Revoked – Unlike a revocable trust, once an irrevocable trust is created and funded, it cannot be amended or revoked. That’s why it’s crucial to choose the right trustee and clearly define distribution terms from the start.
Long-Term Care & Medicaid Protection – One of the biggest advantages of an irrevocable trust is that, after a five-year lookback period, assets in the trust are protected from being used for Medicaid long-term care expenses.
Protects Your Assets – Because you no longer legally own the assets in an irrevocable trust, they are typically shielded from creditors and lawsuits.
Who Is an Irrevocable Trust Best For? If you’re concerned about Medicaid planning, asset protection, or estate tax reduction, an irrevocable trust can be a powerful legal tool.
Differences Between an Irrevocable and Revocable Trust
| Factor | Revocable Trust | Irrevocable Trust |
| Control Over Assets | ✅ Full control | 🚫 No direct control |
| Ability to Modify | ✅ Can amend or revoke | 🚫 Cannot be changed without extensive approval |
| Probate Avoidance | ✅ Yes | ✅ Yes |
| Medicaid Protection | 🚫 No | ✅ Yes, after 5 years |
| Asset Protection | 🚫 No | ✅ Yes |
Which Trust Is Right for You?
When deciding between a revocable and an irrevocable trust, your choice should be guided by your personal goals and financial needs.
A revocable trust offers full control over assets and allows modifications at any time, making it a flexible option for those who want to retain decision-making power. It also helps avoid probate, ensuring a smoother transfer of assets upon death. However, a revocable trust does not provide Medicaid protection or asset shielding.
An irrevocable trust offers significant benefits for those looking to protect assets from creditors, qualify for Medicaid after the five-year lookback period, or gain potential tax advantages. Once established, an irrevocable trust cannot be changed, and the grantor gives up direct control over the assets.
If maintaining flexibility and control is your priority, a revocable trust is likely the better choice. However, if long-term care planning, asset protection, or tax benefits are key concerns, an irrevocable trust may be the more strategic option.
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Estate planning is not a one-size-fits-all solution—your trust should be tailored to your specific needs and long-term goals.
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About the Author
Attorney Jennifer Haskins is a Rhode Island trust attorney dedicated to guiding families through estate planning, probate, and trust administration. She helps families navigate the complexities of revocable and irrevocable trusts, ensuring their assets are protected and their wishes honored. A Warwick native now living in Cranston, Jennifer provides compassionate, client-focused legal guidance tailored to Rhode Island families’ unique needs.
Attorney Haskins earned her J.D. and certification in Compliance and Risk Management from New England Law in Boston, and is licensed to practice law in Rhode Island. At McCarthy Law, she assists clients in establishing customized estate plans, administering trusts, and avoiding probate to protect their legacies.
When she’s not advocating for her clients, Jennifer enjoys playing tennis, reading, attending concerts and plays, and exploring the outdoors with her Golden Retriever mix, Murray.